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vagabundo [1.1K]
3 years ago
7

According to the efficient market theory, A. prices of actively traded stocks can only be under-valued in an efficient market B.

prices of actively traded stocks can be under- or over-valued in an efficient market, and bear searching out C. prices of actively traded stocks can only be over-valued in an efficient market D. prices of actively traded stocks do not differ from their true values in an efficient market
Business
1 answer:
Otrada [13]3 years ago
7 0

Answer:

The correct answer to the following question will be Option D.

Explanation:

  • The theory or hypothesis that even as soon as it arrives, all institutional investors obtain as well as act on most of the necessary information or data. Even if this was purely real, there would have been no stronger investing strategy than just a coin flip.
  • As per this principle, the dynamically trading share prices in such a competitive market don't vary from actual measured value or beliefs.

The other choices have no relation to the given circumstance. So choice D is the correct answer to the above.

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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t
Montano1993 [528]

Answer:

$106.02

Explanation:

Div₀ - Div₉ = 0

Div₁₀ = $10 and then will grow by 6% forever

we must first determine the terminal value for year 9 using the dividend growth model:

P₉ = Div₁₀ / (Re - g) = $10 / (10% - 6%) = $10 / 4% = $250

now we shall discount this to present day value:

P₀ = $250 / (1 + 10%)⁹ = $250 / 2.3579 = $106.02

3 0
3 years ago
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1)
Verizon [17]

Answer:

$11,000

Explanation:

Data provided as per the requirement of net income for year 1 is here below:-

Provided consulting services = $50,000

Paid rent expense = $12,000

Paid employees salaries = $27,000

The computation of net income for Year 1 is shown below:-

Net income for Year 1 = Service revenue - Rent expense - Salary expenses

= $50,000 - $12,000 - $27,000

= $11,000

Therefore for computing the Net income for Year 1 we simply applied the above formula.

8 0
3 years ago
Before heavily soiled condiment pans are washed and sanitized they should be
Nezavi [6.7K]

Answer:

degreased

Explanation:

Degreasing can be defined as the removal of grease stains, etc in cooking utensils from pans to pots, etc. Degreasing is one of the cleaning procedures. its aim is to ensure that sticky or grease stained cooking utensils and equipment in the kitchen are properly removes before washing and sanitizing.

Cheers

6 0
3 years ago
GAAP stresses the importance of obtaining consent when collecting, using, and sharing informaton about customers. if a company's
Sophie [7]

Answer:

Explicit consent.

Explanation:

Explicit consent then means that the data subject must give an express statement of consent, for instance in a written statement.

4 0
3 years ago
How do insurance companys make money?
user100 [1]
Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets. Like all private businesses, insurance companies try to market effectively and minimize administrative costs
8 0
3 years ago
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